50% of marketers aren’t spending enough on a single channel to boost ROI

Anne Freer | July 11, 2022

Mobile Advertising

Approximately half of mobile and digital marketers aren’t spending enough in a single channel to maximise ROI, according to new research from Nielsen.

Although 50% of media plans are underinvested by a median of 50%, ROI could be improved by 50% with an ideal budget. 

Many brands tend to test the waters to see if new media works by spending smaller amounts. However, small amounts make it harder to see if media is working. 

Podcast ads, influencer marketing and branded content delivered over 70% in aided brand recall.

The report finds that channels rarely deliver above-average for brand and sales outcomes while 36% of media channels performed above average on revenue and brand metrics. 

However, to boost ROI, marketers should focus on upper and lower funnel initiatives. 

Adding upper-funnel marketing could boost ROI by 13-70%.

“In a time when there are more channels than ever to reach desired audiences, it’s critical that insights on ROI are attainable and easy to understand,” said Imran Hirani, Vice President, Media & Advertiser Analytics, Nielsen. “Brands can’t afford to waste valuable ads on the wrong audiences. By investing wisely and having a balanced strategy of both upper-funnel and lower-funnel initiatives, brands can reach the right audiences and maximize their ROI.”

Comparing channel ROIs can set pricing strategies and social media delivers 1.7x the ROI of TV while social gets less than a third of TV ad budgets.

Nielsen also found that campaigns with strong on-target reach made for better sales outcomes. But just 63% of ads across desktop and mobile are on-target for age and gender in the US. 

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